Make Those Needed Improvements Now

This time of the year business historically slows down for contractors, and given today’s economic malaise it’s a great time to barter for needed services to fix up your property.

Because repairs don’t materially add to the value of your property or prolong its life, repairs are immediately deductible. And they would include the following:

•      painting, both interior and exterior

•      fixing leaks and repairing the damage they caused

•      cleaning the exterior of a building (when the work doesn’t prolong the building’s life)

•      patching a roof

•      shoring up a foundation to prevent its collapse

•      fixing the deteriorated surface of a sidewalk, driveway, or parking lot

There’s going to be a flurry of activity in this area, so don’t delay in contacting your trade exchange to see what you can get in the way of painting, plumbing, electrical and roof repairs. Then decide how you’ll handle the repairs for tax purposes.

If business is slow now, or you’re starting up and have no income, you may want to spread out the deductions to future years when you expect to be in a higher tax bracket as deductions would be worth more to you then. Most of the time, however, you’ll want to take the write-offs as fast as possible.